Buying Property In Spain

    Legal Restrictions & Type Of Property

Today the legal restrictions for foreigners buying a property are almost non-existent.

Except for certain military areas, especially close to the borders, you are, as a foreigner, free to purchase any private property. We stress the word private property. The reason is that there are also state-subsidised dwellings for sale in Spain. A foreigner can only buy such a subsidised dwelling (called VPO - Vivienda de Protección Oficial) if he is, or firmly intends to become, a resident in Spain. There are several limitations as to income and family situation, as well as to resale of such dwellings.

The offer of Spanish properties can be grouped as follows:

An apartment: Easy to maintain if you are not staying permanently in Spain, low maintenance costs, but also less privacy and often more noise.

A semi-detached bungalow: More privacy, less noise, but with slightly higher maintenance costs.

An individual villa: Highest degree of privacy and very quiet if you are not on a noisy road, but higher maintenance costs and a higher risk of being broken into when you are away.

A farm or a village-house: Normally low price and low maintenance costs. In a village you may have noisy neighbours, but you will learn Spanish from them!

Second-Hand Property

If you buy a second-hand property, it may be worthwhile having a technical survey made before buying. Older houses were sometimes built with inferior materials (like iron water-pipes) or need rewiring before you can get a new contract with the electricity company. On the other side second-hand properties often come cheaper than similar new ones.


    Inspection trip or not

Many foreigners have found their dream house at a moderate price by taking part in an inspection trip organised by sales organisations abroad. Some have found their Shangri-La by going south on their own and comparing urbanisations and offers. Some buyers have been defrauded by foreign sales agents organising their trip, others have fallen into the hands of sharks operating in Spain. So, both methods can be used, but great care should be taken in any event.

If You Go On An Inspection Trip

If you go on an inspection trip arranged by a foreign sales organisation, you should first investigate their credentials.

Secondly, you should ask them for documents showing their investigation of the properties and promoters they recommend: What is the name of the promoting company; their share capital; their registration in the Spanish company-register and the names of their directors?

If You Go It Alone

You must investigate in the same way if you go it alone. Do not sign any papers or part with any money before you have all the facts at hand. Also, before signing when you think that all the facts are on the table, take legal advice. A legally trained mind or a person with knowledge about the local scene can detect problems you have overlooked.

Before Going On An Inspection Trip

Before going on an inspection trip, you should ask for a copy of the contract or reservation document they eventually will ask you to sign. It should be in a language you fully understand, the actual contract in Spanish with a translation in your language. Make sure that the original and any translation corresponds. Always have any paper to be signed, vetted by a lawyer or by FIPE.

If you want to use a lawyer for the transaction, it is important that you are able to communicate with him in a language you dominate. On the other side the lawyer must be conversant with Spanish legislation and the real estate scene in Spain.

Real Estate Agents In Spain

Are you protected if you use a registered real estate agent in Spain? Some of them are very correct and conscientious; others are more interested in a fast sale than in happy clients. Always ask around in the area where you want to buy to find the "good apples". Foreign owners will know them, as they have also been buyers.


    Buying a finca rustica

Definition

A "finca rustica" means an agricultural farm or a piece of land that is not classified as building land.

Building Plot May Be Finca Rustica

Some of the building plots being offered to foreigners in Spain are, in fact, fincas rusticas, and after the purchase of the land you may find out that you will not be permitted to build.

Buying Outside Town Centres And Urbanisations

If you want to buy something outside the town centres and the urbanisations, you should be aware of the following:

* You have no public guarantee of services for water, roads, electricity or sewage, as you should have on an urbanisation.

* A water-channel next to the land does not necessarily mean that you have any rights to use the water. Water in a well in April does not guarantee you the same well will have any water in August.

* Road rights must also be mentioned in the title deed. Do not get into a situation where, after the purchase of a finca, you are forced to buy additional land for road connection.

* A nearby electricity line is no guarantee that you will be able to tap it. It may be a high tension line. A transformer for only one dwelling may be too expensive.

* Each region has a minimum size requirement before issuing a building permit on agricultural land. You must find this out from the town hall, and you must make absolutely sure that the plot offered has the minimum required.

* It is easier and more economical to get a license to repair an existing building than to construct a new one. If you can restore an existing building, you may not need complete architect's plans, but only a sketch, to obtain a license for "obra menor" (minor work). Consult the town hall beforehand.

Are You The Right Type For Living Under Spanish Rural Conditions?

Ask yourself the question: Am I the right type for living under rural conditions in the Spanish countryside? If the answer is not resoundingly affirmative, you should delay the purchase until you have become convinced. Maybe it is better to start with a small property on a planned urbanisation first, and take the step into rural Spain after you have become more acquainted with the country.


    Buying a plot

Planning Permission & Building License

Before buying a building plot, you must be sure that you can build on it. Even in an urbanisation with many houses already built, you may find there is no planning permission and that the houses have been constructed illegally, or that you will be the first one to be refused a building license. You must investigate in the town hall and get a written confirmation that you can build on the plot in question.

Sales Contract

You may also ask the vendor to guarantee in the sales contract for the plot that you can build a house of so many square metres on the land and get your money returned if building permission is not granted.

Services To The Plot

When buying a building plot in an urbanisation, you should have all services to the border of your plot, like water, electricity, sewage and paved road. The cost for this is included in the plot price. The only additional cost to you should be for the installation of meters for water and electricity.

Limitations On Construction

On a building plot there are certain limits to the height of the construction, the distance from the house to the road and any neighbours. Find out if you can get the house you want in the position you want before you buy.

Points To Be Kept In Mind

The following points must be kept in mind when buying a plot for construction of an individual villa:

* Do not accept a purchase document that does not clearly indicates the urbanistic qualifications of the land - whether it is a building plot (finca urbana) or agricultural land (finca rustica).

* Do not make a final purchase until you have written confirmation from the town hall that you can use the land for the purposes you intend, or have the assurance that the plot has been zoned and approved for construction.

* Do not sign before you know there are no high tension lines, old rights of way, water pipes or any similar obstacles on the land that may influence the construction.

* Do not buy before you have made sure that there are no major roads, factories, discos or similar irritants planned next to the property.

* If you buy the land from the same person or company that will also construct the house, first demand the title deed to the land upon payment. Then start the construction, and later write the house into the land escritura (declaración de obra nueva).


    Buying a second-hand property

Investigating The House

If the property is older and you are no great expert on buildings, you can use a surveyor to investigate the house. Some owners sell their house at a cheaper price because they know about a new road, factory or disco to be built nearby, or because the maintenance or community fees are too high.

The Title Deeds (Escritura)

The first thing to ask for if you want to buy a house or apartment from a private owner is a copy of his title deed (escritura). There you will see if the vendor is the owner, and the registration number of the property in the property register.

Visit The Registry For The "Nota Simple"

You can then visit the registry and ask for a "nota simple". The "nota simple" tells you if the vendor is still the owner, how big the property is and if there are any charges or encumbrances registered on it.

Debts Not Registered In The Property Register

There may also be debts not registered in the property register, you better ask in the town hall if there are any unpaid taxes or charges, and in the Community of Owners if there are any outstanding debts.

Property Buyers Guides On Other Websites

www.gazettelive.com/